Hi all,

I am a UK national working in the US on a J-1 visa. My institution witholds my taxes and I have to file for a refund, both this year and last I claimed the tax back citing article 20a and got a full refund. Originally I was going to stay for less than 2 years, however the option is now available to stay longer, which I would like to do but I am concerned about my position with the IRS. I know I will have to pay them back but I cannot do so in one lump payment. I understand there are payment plans but will I incur penalties and interest, and if so does anyone know roughly how much these would be? I do not want to get in trouble with the IRS but I want to remain at my institution. If anyone has any advice or has been in this situation themselves it would help me greatly.

Thanks.

When you file the amended returns to pay the tax, you can request the IRS waive the pailure-to-pay penalties. They may or may not grant the waiver.

You can then submit Form 9465 to request a payment plan. The IRS charges about $90 to set up that plan, and they WILL charge interest (required by law), but the interest rate is a reasonable 8%, and, as long as you make your payments on time, you will have no problem with the IRS, though they WILL confiscate subsequent federal tax refunds until the debit is paid.